Skip to main content

tv   Street Signs  CNBC  July 12, 2016 4:00am-5:01am EDT

4:00 am
good morning, everybody. welcome, you're now watching "street signs." these are your headlines today. ftse 100 holding as theresa may gets set to become next prime minster. brussels reacts telling cnbc the appointment is a positive step. >> in the uk's interest to give clarity as soon as possible to get clarity on future relations between the eu and uk. if there's one thing investors don't like is uncertainty about
4:01 am
their future. shares accelerates after strong second quarter. and when you cut the purchase on the top of the stocks 600 in hopes the new ceo will simplify the lender's structure. >> welcome to "street signs." we're going live on facebook this week as we've been saying. thank you for those who have been watching and joining us online as well. we have have extra content during the breaks with you. so do make sure you tune in. i'm just figuring how to get your comments live. so i can be with you on all of these social medias. so do join on facebook live this week.
4:02 am
let's get to markets. stock share up 600. just hanging on to slight gains here in europe. let's show you what's been going on in the states as well and our general european markets. interesting story is what's taking place in general in these record highs that are being set in the states we saw wall street closing at a record high. we have a lot of positive data as of late. the big one being the payroll data coming through on friday. smashing expectations. much better and also this notion we could be looking at more stimulus across the board. not just coming from a particular central bank, but a global stimulus. japanese, for example, a lot of investors thinking about look at japanese government injects money into fiscal spending. the s&p 500.
4:03 am
you've can see a real rally having taken place. the five-year change indicating higher 60% p. s&p boosted by the likes of amazon, we saw the closing highs being broken in yesterday's session as well. the best performing sectors still defensives. utilities, telecotelecoms, cons staples, we'll talk about whether the rally makes sense and whether it's a believable rally and whether you should be getting in on it. get involved with your questions and comments on the top of the show. you can find us on facebook live. i think i see comments coming in here. maybe we can have christie come and check that i'm looking at this the right way. we'll be taking your comments live on faceback and through regular avenues like twitter, but especially facebook this week. theresa may is poised to become prime minster by tomorrow
4:04 am
evening. david cameron said he would formally resign. >> i am honored and humbled to have been chosen bip the conservative party to become its leader. i would like to pay tribute to the other candidates during the election campaign and i would like to pay tribute to andrea leadsom for the dignity she has shown today. i would also like to pay tribute today terror camero cameron. to forge a new role for ourselves in the wild. brexit means brexit and we're going to make a success of it. >> now, meanwhile, the european commission has cut the uk's growth forecast saying the country will be hit hard
4:05 am
following the brexit vote. the total negative impact by 2017 is predicted to between 1 and 2.5%. nancy is in brussels. t the meeting taking place. >> that's right. it is the first ecofin meeting since the lempbd vote. so a lot of discussion as you may imagine over the economic impact, but the political impact and its desire to restore credibility surrounding these institutions and as the meeting among the euro group finance ministers got kicked off yesterday, we also had the news about theresa may becoming the next prime minster in just a few days here so inevitably a lot of people reacting to that. you'll remember in the first new daze after the referendum vote the call for leader in brussels was to move as swiftly as possible with the leadership transition so by and large this
4:06 am
is seen as a positive step. this removing uncertainly over the leadership transition. the sooner theresa may takes her position, the sooner article 50 can be triggered. that's the formal league process to starts for the brexit. relisticically article 508 may not be triggered until tend of the year, even early next year. i had the chance to speak to it will president of the group and asked him if that would be too long to wait. >> we can't force them to go any faster. it's in the uk interest to get clarity between the eu and uk. investors don't like the uncertainty about the future. let's get that clarity as soon as possible. >> do you regret mr. osborne is not here today.
4:07 am
>> whenever mr. osborne is not here, i always miss him. >> reporter: a very clear message once again from brusselss that time is of the essence and keep in mind when theresa may gets down to the business of leading negotiations with eu that will largely be cared out with juan claude ya g yunger. i had the chance to speak tom eu commission for economic affairs and asked him whether he was encouraged bid the fact that theresa may supported remain. here's what he had so say. >> it's a good signal that the process accelerates and that we have a new prime minster because as i said, there db a negative impact of brexit economically. >> when the transition is over and you can start building upon that.
4:08 am
the brexit is a structural change for europe, and as any structural change, it needs a time period, which given the size of the structural change, needs to be large enough, long enough so that we can adjust. we need to act fast. so yes, in those respects, the nomination of theresa may is good news for the process its. >> reporter: so the overall consensus is it's a step in the right direction. as soon as theresa may gets inside, the sooner, the better, but a lot of uncertainty still hanging over here in brussels as you know. particularly when it comes to the banks. we'll get a for mu comments how concerned the leader are. back to you. >> see you soon again. gro green, color of the day. nancy got the memo.
4:09 am
joining us now is robert smithson. also with us is pierce cohen. don't you think it will portuguese are shaking in their pants alongside a number of other european countries where you could be looking at them going down the same path as the uk. >> certainly the portuguese and italian banks are probably higher on my list of causalities from the fall yacht of brexit. >> i guess i said portuguese because we heard from the finance fin center theminister. >> what's incredible to me you're still getting markets like the s&p 500 making all time highs. >> yes. >> it's a freak of a world we're in from financial market point of view. >> but a freak of a world i'm supposed to believe in. >> you've got to believe in it for a bit longer. again, another thing that's
4:10 am
significant is we've when people have been saying we're only one significant shock away from the weird world of stocks at all-time highs, yields, record lows. we're only one significant risk away from that collapsing. what does the significant risk have to be? we had the brexit situation kick off now and that really hasn't been a catalyst to reverse these scenarios. >> no, it hasn't. the political uncertainty even though we might think we know who the prime minster is going to be, there's still all the political uncertainty about how you deal with what comes next. is article 50 going to be triggered. will it be triggered sooners versus later. >> there is a good argument for holding off on trigger article 50 until may next year. the french presidential election is not resolved until then. while it looks very likely it will be the republicans a, the
4:11 am
question is, do you really want to begin negotiating with fran swau holland. the big question of course as we all know is does the uk pursue a relationship like norway and/or does it have a loser relationship. if political has a loser relationship, it means a significant longer negotiating period and all significantly longer paid of uncertainty and a period of uncertainty in particular that affects the status of the uk as the financial capital of europe. >> i was reading some analysis earlier that's said basically in five years there will no longer be a united kingdom. that scotland will want to go independent and it will want to be a member of the eu.
4:12 am
potentially northern ireland joining as well, maybe, who knows or parts of northern irela ireland. are we looking at the complete unraveling of the uk as well? >> no. i mean, look, physical you loif and go back two years or so when there was a scottish referendum. at that time, oil was $130 a barrel. scotland, big exporter of oil, clearly it looked great. the price of oil is now $50 a barrel. the amount of oil coming out of the north see is diminished. scotland is not a viable state right now. >> i disagree with the idea we should wait as long possible to trigger this article 50. i think that just -- i actually think the strategy that might work the best would be that let's get on with it, let's trigger it. i think their still desperately
4:13 am
clinging on to the scenario that somehow we won't leave the eu and theresa may is the right candidate, but i think if we get on with it and then, you know, put out the intent that we're leaving and that might just set the cat amongst the pigeons in the eu. perhaps there's a deal to be don if you're an optimist. >> is there something ironic about someone not wanting a brexit leading the country. >> i think she's easily the best candidate. she was back seat remain. for that reason, she kind of gets away with now being in charge of the government, even though we've had a brexit vote. >> does anyone know if she was in favor of remain, she said almost nothing during the campaign. >> you're staying was. get your questions and comments through, you can find us on e-mail, twitter, however we are live on facebook streaming through the entire week through the entirety of the show.
4:14 am
i will get to your comments on facebook as well. i've tweeted the link for the facebook page where you can watch us as well. we'll have more content for you during the breaks too. you'll be able to see a bit more of what goes on. in around an hour's time mark carney will be testifying. if you're in the uk, be sure to stay tuned for that. we will be taking that live. and, you know, when you get a tune in your head and you simply can't figure out what it is or you keep humming something, you don't know where you got it from. there's another one out there, david cameron has set the internet alight by humming an unknown melody. he was heading in melody as he was heading into number ten. take a listen and let us know what song you think it is. you can let us know on facebook. >> thank you very much.
4:15 am
[ humming ] >> right. aand many bunees rely onthe une and moref ythingnline. yo business bemes sr business. that's why we make more ecommerce deliveries to homes than anyone else in e countr the united states postal service. iority: u
4:16 am
4:17 am
i think it was lovely day. >> i reckon it was completely random set of notes. >> what do you think? >> i think i'm with you, random set of notes. >> i like thinking of cameron as having more class. daimler has posted a strong second quarter. margins for cars and trucks exceeded expectations.
4:18 am
peugeot pew jot. pew jot also warn nad the european market could see a small decline in sales following the brexit vote. when looking at ahold announced a repayment. the dutch retailer also updated investors on the merger saying it expects the deal to complete rather by the tend of the month. the ceo of the french luxury brand celine is going to replace burr berry. >> and shares in asos is trading higher. medium term benefit from the weaker pound. the online fashion brand has seen sales growing at the top end of the expected range. somewhere between 20 to 25%.
4:19 am
as so is saying the uk remain as strong market. fda has approved the treatment for eye disease. come bat dry eyes which affects around 16 million people in the u.s. sold under the brand z drop. net over a billion dollars in sales per year. >> now hijacking the agenda in brussels, there's no crisis for italy's banks. who hadded that lenders should stop asking for public money to solve the problems. the head of euros finance zone said the problems need to be sorted out in the banks by the banks. talking to the tlan media to safe guard the banks was reason reach. when looking at the italian banks this morning a little bit
4:20 am
higher. unicredit around 8 people's exhibit no. --% or so. lowering economic growth. saying the country faces, quote, monumental challenges. they're also warning that problems that the weaker bapgs could weigh on the entire italian banking system. sticking with the italian banks today, takes the reigns at unicredit. has been with the company since 2011. the new unicredit ceo is expected to simplify the structure of the bank perhaps by selling some foreign assets. claudia is in milan and joins us with more. claudia, what will new blood at the helm of the bank too, not just unicredit, but also for the general banking sector in italy
4:21 am
at the moment? >> reporter: well, certainly the new ceo is boating well for the future of italian banks in morning because unicredit higher. bringing with it all the italian banks. of course the idea we did area some positive comments saying also that he is thinking that a solution for the italian banks is within reach is helping, but unicredit jump here is expected to do a lot for unicredit going forward in terms of cost reductions and in terms of strengthening capital and improving the risk discipline overall and the sell of assets and moving to help strengthen a core tear one rh owe. one of those things happened yesterday. discount,ount. you are seeing fin co-bank on
4:22 am
the index performing as the worst performer. down and leveling up at that level. also the asset management group who has been in talks with santander. that could be very helpful also for unny credit. first board meeting yesterday seems to have overall positive. we're looking at a good day after many days of negative for the italian banks. i would say that so far so good today. back to you louisa. >> claudia, thank you very much. joining us live there from mi n milan. robert smithson still with us, you were indicating that you were also worried about the italian banks at the moment. is that the bigger story or is it european banks. >> european banks generally, but specifically italian. i think that they have to be a
4:23 am
little bit careful here. obviously they need capitalizing. in april way before brexit tried to raise one and a half billion euros and raised nothing. it's not like these banks need to sort themselves out, they can't. so either you kind of bail in, but then of course the italian banking system is unique amongst european banks in a lot of the italian bank debt is owned by consumers. so if you bail in the consumers, it's still a taxpayer paying the bill which is the whole point for the eu rule changes in the first place. then what happens there because if they're really not careful, they bail in italian consumers, renzi loses his referendum in october. je general election, five star movement. might be the uk is the only one not having a referendum.
4:24 am
>> is that how you see it as well. >> italy is one of the least indebted countries in europe on a private sector basis. this is not a problem on the scale we had in the uk. this is not a problem on the scale they had in spain. if you look, i mean, take consumer debt to household debt to gdp. in many could the italians don't you very much really. the problem they have is the a simple one. they could do all the things that were done in spain, but they forgot to do them before the rules changed. if they had done it earlier, it wouldn't have been a problem. i suspect a typical euro fudge and say obviously people who bought bonds before the stated rule changes happened shouldn't
4:25 am
be bailed in which therefore enable s them to avoid bailing n all these people. i suspect they will put together -- the numbers fwen are fairly small. >> can i just bring it back to the central banks and what the banks are doing to support the rally we're seeing across the board at the moment. do we think the bank of england is going to do anything on thursday or just think that we think they are? >> i was asking this question online earlier on twitter. >> i think carney made a bit of a mistake. rare to give him credit. he committed himself too specifically so he said we're most likely going have to make a move on rates this summer. >> yes. >> i think that was a mistake to be so specific. he has to deliver a messageover reassurance for sure. this brexit risk it's so unusual it's potentially two to three years of risk, right, not the
4:26 am
worry i have is that carney promises too much too soon. when ultimately let's be honest the ammunition box at the bank of england is pretty empty. he's got to be pretty careful he doesn't use up ammunition before the main battle begins. i think you're probably going to see politically maybe this is the catalyst for the first time in many years. we've got real change in direction on policy and you might actually see fiscal policy coming in more as a catalyst. >> questioned today about treasury select committee. we'll have that live for you. make sure to stay tuned for that. probably have to answer some pretty tough questions. also because he stated before the brexit vote that it might not be best thing financially to vote for leave so he might have to answer to some mps on that.
4:27 am
thank you both for coming. staying with the banks shares. dnb sharply lower today. bigger loan losses in 2016 due to the slumps seen in oil prices. off by 8% at the moment. shares in ubs are in the red with trader siding the swiss daily bleak that france is seeking a 5 billion euro fine over tax evasion. >> hsbc was spared charges over money launderering. the official including chancellor george osborne intervened for fear of destabilizing the financial system. >> keep your comments coming through. it's nice to see you as well. good morning to all of you. we are live on facebook
4:28 am
throughout this entire week. we'restreaming live there. coming up in the show. poke man go app. we'll delve into the world later on the show. someone was explaining this to me a while ago. an adult was explaining how she harvests eggs or something like that. also coming up on the show for all of your facebook viewers itching for a poke hit make sure you stay around. we'll find out why the poke man go app has become more popular now than tinder. stay was. stay with us.
4:29 am
4:30 am
hi, everybody. welcome back. i'm louisa bojesen. you're watching "street signs."
4:31 am
political fears ease after theresa may gets set to become britain's next prime minster. brussels reacts with the group telling cnbc the appointment is a positive step. >> it's in the uk interest to give clarity as soon as possible to get clarity on future relations between the eu and uk. if there's one thing that investors and consumers don't like is uncertainty about their future. shares accelerating after the german car has second quarter earnings. and hopes that the banks new ceo will simplify the learned structure. >> hi, everybody. welcome back. you're still watching striends. i'm very happy to tell you that the bank of england is just coming through on our wires now with the financial policy
4:32 am
committee minutes. we're hearing that the bank of england, record of july the 1 meeting. they're showing policymakers united on the need to lower the banks buffer. this is one of the things mark carney maybe questioned about during the treasury select committee hearing that takes place. the uk financial conduct authority warned policymakersers of risks or near term suspensions of real estate funds. they agreed that it was appropriate to take no action on the bank's liquidity buffers due to the bank of enginland's new lending operations. they also said they're ready to take further actions deemed appropriate to support the financial stability. so they basically they were objecting to the decision to cut the bank's capital requirements.
4:33 am
that was according to these minutes being accomplished from their meeting. so the bank of england records no dissent over the lower of the bank capital buffer after the brexit vote. again, that's going to be very interesting to hear what mark carney has to say at the treasure riy select committee. we will be streaming it live for you or taking it live for you. if the you're in the uk we're also going to be dweering up for the rate decision that take place on thursday. there's a lot of speculation about whether or not the bank of england will decide to cut rates this week or whether it's too early. carney has hinted they might stand ready to do something this summer if need be, but as you heard one of our guests saying maybe they got a bit ahead of themselves. we'll have to wait and see. european equity markets trading a bit higher at the moment. just have the smi and obx seeing some slight losses this moment.
4:34 am
the ftse si lag handgun a bit behind. although we have had a pretty extraordinary rally from the ftse its. up by more than 20% from february lows. so at 11 month highs on the ftse trade. >> the u.s. futures, we are what, five hours away from the market open. we have an imapplied open on the right hand of the screen. we're being called higher. green on the right hand of your screen. bernanke meets with abe. has raised expectations of further fiscal stimulus. there's speculation we could be looking at an injection of what $100 billion.
4:35 am
>> reporter: that's exactly correct. shinzo abe emerging from the meeting with the former chair with a lot of chourge, you would have to say. reports in the immediate aftermath of that meeting suggesting that the two men discussed what steps are necessary for japan to end deflation and achieve sustainable economic growth. that was the headline. shinzo abe admitting the new koft must bold economic steps to accelerate investment. he has requested an economic stimulus passage to be compiled by the end of this month, however importantly for all of your out there, today's announcement actually makes no mention of what that passage might look like. it includes no figures. louisa as you pointed out correctly, reuters report suggesting the government is prepared to spend $100 billion. however, a separate release
4:36 am
today from the japanese economy minister says the government may issue construction bonds to fund that plan stimulus passage to revive the economy. now it is just an idea at that point, but i think it's very safe to say that all of this stimulus talk is certainly been supporting the nikkei 225. take a look, this captures it really well. as you can see, most stocks and sectors in positive territory on the 225 this session. financials actually leading the game. as a result we saw a rally today. indeed we're also tracking developments in dollar yen as well. this is all causing the yen to weaken after post-brexit highs. the improvement and risk segment weighing and breaking through that handle. very quickly can we flip the wall also bring you across how we saw other asian markets fairing throughout the course of the session.
4:37 am
australia making gains. singapore also looking good. risk gone was the mood across asia today. >> good to see you. thank you very much. i'm just getting the hang of this facebook thing here. we are live at the moment. nintendo is perhaps the most sought after stock today. newly smart game popular. immensely popular. have you tried the game yet? >> reporter: no, because it hasn't been released in japan yet. it's about everybody is really looking part ing forward to it. the japanese video game company continuing to extend gains for the fourth straight day today. shares have climbed over 60% during the last four trading days. recovered the 3 trillion yen mark for the first time in eight months.
4:38 am
smartphone game, pokemon go. launched last week. it's soon to be released here in japan as well it became an overnight sensation topping smartphone app rankings mpl nearing that of twitter. the augmented reality game uses gps mapping and camera systems and players move around watching the smartphone screen to find and capture pokemon characters. the gain was jointly developed by pokemon nintendo. the game itself is free and revenue comes from sales of online items. during the past year, nintendo had suffered a 30% drop in share prices and investors are looking whether the company's venture into smartphone games will lead to boost in profit. the game is able to draw in adults as well as children who are familiar with the character. since it also has the power to
4:39 am
bring people to an actual location, it may have the potential to be used as a promotional tool, as well. >> thank you very much. i need to get my head around people looking busy on the street and turns out they're getting egg hatching machines. all pretend egg hatching machines. >> thank you very much. for more on pokemon, pure funds etfs. he joins us from new york. you've got video game tech etf where you can invest in pokemon directly, but indirectly through this etf. >> yes, gamer gamer first etf to focus on video game technology we brought out in march and anyonintendo is one of the hold in that fund. >> owning a third of the actual
4:40 am
pokemon company. >> will. >> right so our fund focuses on publicly traded games from around the world. nintendo is one of the largest holdings. there is exposure to this pokemon fe nonnon. this is a franchise that relates to so many people from my age and younger and their parents. this is the first breakthrough we've seen in augmented reality gaming. it shows how nintendo is spreading the wing and finding ways to monetize. this is the first game people can really point to and say you know what augmented reality is, it's the pokemon go game. that's the next phase we're beginning to see where gaming. >> i had someone in the newsroom
4:41 am
a little bit younger than me say something i remember the initial pokemon when they first came out easier ago and it takes me back to that. do you think they've also managing to scoop up everybody regardless of age in one go, as well. >> one of the great things about the franchise is it's popular with males, females, boys, girls all ages really. so it's something they might be able to capture new users and the fact they're now using mobile platform: you don't need to own a nintendo counsel to play their games, but finding ways to reach new people and using smartphones they can reach more people. >> there are people questioning the amount of profit then ten doe would have to make in order to make an impact given the difficulties they've had with people switching wag from the console and going mobile. >> i think thes is just nintendo realizing those challenges and
4:42 am
finding new ways to get their software into people's hands. here's another way to access new users and that realization is very important. maybe create completely new ones based on the success they're having with this augmented technology. >> thank you very much. joining us from pure funds etfs. right in if you've tried the pokemon go game. let us know what you think of it. saint paul is right down the street from here. you harvest something from saint paul. collect eggs from saint paul. maybe go check out saint paul if you're looking for virtual eggs. court is set to rule on philippine right to china to export resources across the south china sea. >> reporter: just about half an hour at thing he, we're
4:43 am
expecting this landmark decision. in the runup to decision, the pr campaign dismissing the court case. i just wanted to show you some of the headlines in the papers today. this is a paper that says china stands firm and won't compromise on the ruling on the south china sea. this is the beijing time's. right now, china claims almost the entire body of water. of course million of its neighbors take issue with that claim including the philippines which has its own counterclaims and has taken its case to the hag and is arguing that china's claims violate international law. this case has raised tensions between china and the philippines. in fact in beijing today the security was tight. this ruling is seen auz one that
4:44 am
could widespread implications throughout the region. one because it's seen as a lut min litmus test for the way china is going to approach international law. it's also seen as a potential president for smaller countries to negotiate their own claims. finally washington is closely monitoring what is going to happen because of the increasing challenge that its seen by beijing for its own position in the region. beijing has been challenging the u.s. security system ask which has been in place for a long time and really been the foug dags for economic rise in asia. we see the u.s. getting its own naval patrols as well as the military. if the hag rules against china in a very firm that could lead to further aggression on the part of the chooinds and potentially see more conflict in the region. >> thank you very much.
4:45 am
joining us live from beijing. coming up on the show, which tennis ace was car lyin speakin to at wimbledon. >> andy murray. don't want to miss it.
4:46 am
4:47 am
phenomenon. welcome back issui, everybo spain and portugal, could face penalties for breach lg rules. how problematic is it going to be for them and are they going be able to get away with the budget deficit figures by pushing out some of the deadlines. >> there are two stages to the process of actually enforcing
4:48 am
sanctions on spain and portugal. the first of which is to declare the countries are violating the budget rules. we arewidely expecting the meeting here today from across the eu to take up the eu commissions right fie commissions recommendation that spain and sport guportugal have violated. if there should be a sanction, what kind of sanction. the penalty can be from zero percent. that is one issue that is up for discussion here. also of course sit the first meeting since the referendum. looking at the financial reaction since that time. big focus has fallen on the italian banks. a lot of talk on the sidelines so i had the chance to catch up was the president bloom. i spoke to him about that issue. i don't think the banks are
4:49 am
facing acute crisis however a lot of the exposure to italian banks if they are forced to take a loss, that could really have a political cost for prime minster renzi who has you know has called a constitutional reform referendum later in the autumn. i asked whether he was concerned that it will banks issues could turn into political crisis. here's what he had to say. >> i have full confidence in the italian government. they will find a way to solve the problem in some banks within the frameworks that the eu have. i think they're working very close with the chigs, with the bank supervisor to find that solution. and i think it's possible to do that way before the referendum starts in italy. >> also said rules are rules. he is very reluctant to suggest they should wave the bail. this all hits at the problem of restoring credibility to the eu institutions in the wake of the referendum vote. a lot of people asking questions
4:50 am
about whether the rules really move on a sliding scale. that has repercussions for the budget discussion. people are wondering if in fact spain and portugal get away with a slap on the wrist. i put that question to the eu economic. >> >> credibility is about respecting the rules and also having a clear incentive to reform. if we got that correct answer from portugal and spain, then we can consider zero sanctions, but the fact there was a threat of further sanctions probably will lead to a clearer point of view so whatever is the outcome, the process would have been useful and credible. >> reporter: now, the threat of sanctions comes at a time when both countries are facing serious political hurdles.
4:51 am
i had the chance to catch up was the portugal finance minister i asked him whether his country could afford penalties. >> we all live in europe very delicate situations in terms of the political environment. we think we cannot use those add some more difficulties onto that. >> reporter: so we are expecting the leaders to come out here in just a few hours and reinforce that message of credibility, but the question is at what cost. if they are seen to be punishing portugal and spain here that will likely meet with some backlash at a time when many questions are being raised about the european project and many doubts have been raised in both countries. >> nan cy, thank you very much. people are liking the green today. i keep saying we got the frogje
4:52 am
not in green, but we'll take you anyway. jeremy. let's start with the pound. cable, 131.48. >> if you scroll back 24 hours, we were trading lower. it just under lines the change in the political environment. we now have govern carney talking about the financial stability report. of course last week that exsent waited. the financing of that it will be interesting to see whether he expresses such concerning limit behave the updated forecast to come out at the beginning of august. we have two bank of england meetings in close proximity. one we get an updated forecast backdrop. provide the bank with cover for
4:53 am
additional measures. that's the way the market is really anticipating policy to go and that in itself should limit the relief rally. >> you're saying we could wait until august for the inflation. >> i think it would have made sense. i think mr. karrny has pinned his colors firmly. stake very clearly into the ground he wants to be proactive. i think that's one of the themes the bank is underlying. they put in place the contingency measures. they want to keep ahead of the curve. i think in that context, they probably would imply if mr. karrny were to be pushed back, that would be a damage for his credibility. >> do i sell sterling against the euro. >> i think we've seen this move back towards the sort of 84 and a half level. that's an interesting point. we were assuming we would see it a little contraction back to
4:54 am
that level. are we going to movee short ter? i think it's difficult to see that in the immediate scenario. i would think sterling is fully valued against the euro. we may well see a little bit of a kweez back higher over the course of the next couple of sessions. >> david write in and says the s&p is at all time high, what's next, recession or new highs. >> there are obvious disconnects between what the equity markets are telling us and the ftse is back into market territory again which seens crazy. we are extreme disconnects in a sense the yield curve is telling us something different or the equity markets are implying. i think the scenario is we're going to see slow growth. i think we'll see growth. i don't think we're going into a recession scenario, but equity have to reflect on the fact
4:55 am
because of this policies the liquidity injections we like to see from a number of central banks which are continues to compromise bond yields at the longer end, then the normal message you get from the yield curve isn't perhaps as obvious as we would have normally assumed. >> jeremy, we have though let you go. thanks wimbledon champion andy murray says he's looking forward to the games in rio. >> i was surprised by it for sure. and it's important that everyone comes together to make the, you know, the best of it. such a close game that everyone talks about, you know, because we left that there's a lot of people that are unhappy, but had we stayed, it was going be half the country would be happy with that as well. you know, time unite and make the
4:56 am
think there should be a second vote for scotland to leave so that scotland can stay in the eu. >> i don't know. i think wait the next few years and wait and see what happens with brexit first and then take it from there. >> reporter: and finally, i mean, you've got another 2 million pound paycheck. that's worth a lot less after brexit. not that we care about the money, but we' seen investors watching the show day-to-day and seen the value of the sterling has plummeted. do you care about these things? do you care about the level of the volatilitysterling. >> i haven't thought about it really. i listen to the news and i drive myself and i listen to what's going on. i know a lot of people around london are very concerned about it. i think we've got to wait a little bit longer to see exactly what happens and make our move
4:57 am
from there. >> yes. now, if if youre here in the uk. stay tuned because mark carney will be testifying before the treasury select committee. we'll be bringing you that live. spking of all things sporty. i was with greg reter fordnd one of his coaching team memb champion in rowing. we'll be bnging you some stuff we'rdoing with him on the edge. that's coming up a bit later. really interesting when you're with a real athlete to see their lifestyle and what they do. dna analysis and all kind of interesting things like that. that brings the show to a close. thank you for wating "street signs" today. we'll be with you again tomorrow. same time, same place.
4:58 am
4:59 am
5:00 am
theresa may arriving at downing street for david cameron final cabinet meeting. a cnging of the guard in uk politics this week. we'll tell you why the world is house. bernie sanders finally ready to endorse hillary clinton today. it's tuesday, july 12, 2016 and "worldwide exchange" begins right now. >> good morning and welcome

9 Views

info Stream Only

Uploaded by TV Archive on